| Since the reform and opening up,China’s economic and social development has made great progress.However,the former extensive mode of development with high energy consumption and low additional value also caused serious damage to the environment,the restriction of environmental problems on the society and economic development is becoming more and more obvious.Increasingly depleted resources and deteriorating ecological environment now are receiving more and more attention all over the world.As a large economic province,Shandong Province also is facing the same problem.In recent years,Shandong Province has paid more and more attention to environmental protection and issued a series of policies and regulations related to environmental regulation.However,economic development should not be at the expense of the environment,and environment regulation also should take economic development into consider,According to the theory of industrial organization,unreasonable industrial structure is one of the main causes of environmental pollution.The optimization and upgrading of industrial structure can not only effectively alleviate the problem of environmental pollution,but also promote economic development.Therefore,with the dual task of improving ecological environment and maintaining economic growth,study of the relationship between environmental regulation and industrial structure optimization and upgrading not only has theoretical significance,but also could provide some reference for economic policy.This paper adopts both theoretical research and empirical research.Taking the statistical data of Shandong Province 2007-2016 as the research sample,this paper analyzes the current situation of environmental regulation and industrial structure in Shandong Province.Then,empirical research on relationship between environmental regulation and the optimization of industrial structure from two aspects:formal environmental regulation and informal environmental regulation.At the end,policy recommendations based on relevant theories and empirical results.The results show that environmental regulation plays a positive role in the optimization and upgrading of industrial structure in Shandong Province.Formal Environmental Regulation needs to choose reasonable Regulation intensity.With low regulatory intensity it is difficult to motivate enterprises to upgrade their technology and equipment,excessive regulatory intensity would be beyond the reach of the entire social and economic system.As to informal environmental regulation,the increase of income level,education level and population density can improve the residents’awareness of environmental protection and participation in environmental regulation,thus promoting the optimization and upgrading of industrial structure.Some recommendations are made according to the conclusion.Perfect the system of environmental regulation.Make different environmental regulation standards according to the characteristics of different industries and regions.Enhancing the position of environmental protection sector in the process of economic policy making.At the same time,attach more importance to the role of informal environmental regulation,strengthening environmental education,ensure citizens’ right to participate in environmental regulation. |